Traditional Toys and Games in the US

PROSPECTS

The departure of Toy “R” Us

In 2018, Toys “R” Us, the largest dedicated traditional toys and games retailer in the US, closed all its 800+ US stores. In response, many retailers scrambled to up their game, and traditional toys and games avoided a retail value decline in 2018.

Population trends affect sales

Traditional toys and games has been experiencing headwinds from demographic shifts. The decline in the birth rate for last five years indicates fewer children in the country.

Digital consumption drives growth

Players in traditional toys and games must adapt to the digital era in order to stay relevant to children. Children are spending more time online, especially on mobile devices, whilst watching TV and DVDs is declining.

COMPETITIVE LANDSCAPE

Dinosaurs are back, and better than ever

Value sales of licensed traditional toys and games increased in 2018, particularly in dolls and accessories and arts and crafts. Jurassic Park was a particularly strong toy property for major manufacturers in 2018, especially Mattel and Lego.

LEGO Group’s turnaround

In 2018, Danish construction toy manufacturer LEGO Group – the third-largest player in traditional toys and games in value terms – turned around its revenue decline from 2017. The rebound was due to Lego City, Lego Jurassic World, Lego Harry Potter and Lego Star Wars, with both Lego and Lego Duplo seeing growth.

Spin Master continues to diversify

Over the last few years, Canadian toymaker Spin Master continued to expand its portfolio of toys. It saw high annual sales growth from 2015, partly due to the phenomenal success of Paw Patrol and Hatchimals.

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